What is midata in energy?
Midata in energy will put domestic energy customers in control of their data – so they can quickly, securely and easily share their energy data with trusted third parties. This will enable services including, but not limited to, faster, more accurate tariff comparisons.
Why is midata in energy needed?
Currently, consumers are unable to realise the value of their energy data.
Consumers also do not understand enough about the information about them. The process to enter data into a third party service relies upon having access to this information from a bill or online account, which presents a barrier for users and may cause them to end the journey prematurely. They may also approximate or use inaccurate data. This leads to poor quality results of the end service and potential errors, as the service is unable to tailor to the needs of the consumer and provide them with the insights to their energy they need.
At the moment, there is no standardised way for energy data to be shared with third parties; a consumer cannot consent to a third parties accessing this data on their behalf. Their data is scattered across the industry in different formats and varying quality.
Midata in energy will resolve this, unlocking the ability for consumers to share this data and enabling a new wave of innovative, accurate and tailored services for energy consumers.
What products and services will midata in energy enable?
Midata in energy will streamline the tariff comparison process by removing the need to manually find and enter the required information. This could be with Price Comparison Websites (PCWs) or competitor suppliers providing a tariff quotation. Midata in energy will enable a more accurate comparison based upon the customer’s actual details (ie historical usage) – and customers, if they choose, will be able to provide ongoing consent - to authorise the third party to regularly access their data and routinely provide insight into whether they are on the most suitable deal for them.
This will lead the way for many more innovative products and services that may not have been possible before. Midata in energy will be open to accredited third parties, and we expect it to evolve and expand with the market over time, as companies devise new ways to help consumers.
How will midata in energy be delivered?
The midata in energy project is using an agile, phased approach, with each phase building on the work before.
The project covers three main areas:
- A robust technical solution, which establishes a standardised method for third parties to access consumer data. This will include a dictionary to define the language around data fields, integration mechanisms, security and customer experience.
- An accreditation framework for third parties using midata, to ensure that data is only shared with trusted third parties.
- Supporting robust operational arrangements to monitor compliance and allow iterative evolution of midata.
The midata project is led by Ofgem in collaboration with the Department for Business, Energy and Industrial Strategy (BEIS). To design, develop and test the framework we are drawing from funds allocated in the Retail Energy Code budget for 2019-20.
To maximise the synergies and avoid unnecessary impact on industry, where possible, we will use existing data systems and frameworks and align with the work being done by Ofgem’s Switching Programme, and Ofgem’s mandatory Half-Hourly Settlement (HHS) programme.